UK downturn confirmed as GDP shrinks 0.2%

The decline in the UK economy was confirmed this morning after the second estimate for Q4 UK GDP came in unchanged at 0.2%.

The latest release from the Office for National Statistics is likely to heighten short-term fears of a double-dip recession, although many commentators expect growth to return in the second half of the year. The ONS also revised down output from the UK's production industries, by 1.4%, instead of 1.2%, while manufacturing declined 0.9%, more than the 0.8% previously estimated. Last month, the ONS said the public sector strike seen on 30 November likely "had some impact" on the Q4 figure but said it was not possible to measure the effect directly.